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Sagar Cements Limited
Q 1 F Y 1 8
Re s u l t s P r e s e n t a t i o n
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Industry Overview
2
West
South
Better infrastructure and rural demand
especially in Maharashtra led to an
overall strong demand in the West
Prices too remained healthy in the
region on the back of strong demand.
Demand in the region remained relatively stable
despite the softer demand in TN owing to sand
mining ban & drought, thanks to strong growth in
AP / Telangana.
Prices improved during the quarter on the back of
steady demand.
Perspective on
Cement Prices
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Sagar Cements - Business overview
Demand in the region remained relatively stable despite the softer demand in TN owing to sand
mining ban & drought, thanks to strong growth in AP / Telangana.
Realisations in our primary markets remained strong on the back of better pricing environment and improved demand
Operating profitability remained strong despite increase in input costs
Outlook remains positive on the expectation of normal monsoon, Govt.s focus on infrastructure & affordable housing is also helpful.
3
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation 4
Sagar Cements – Operational Results
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Performance Highlights
5
Revenue
PAT
Plant Capacity (%)
EBITDA
Rs. lakh
Sagar
SCRL
56
64
56
62
458
(647)
1,684
(443)
1,300
680
3,570
1,298
`
Q1 FY18 Q1 FY17
16,633
9,322
21,998
7,171` 22,945
2,599
(26)
30,065
4,251
997
5858
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Recent Highlights – Commissioning of Waste Heat
Recovery Plant
6 Mw waste heat recovery
(WHR) plant has been
commissioned.
Location: Mattampally, Nalgonda
district, Telangana
This will ensure greater control
over power and fuel costs.
6
AQC & PH Boilers
Steam Turbine Generator (STG) Cooling Tower Demineralization Water Treatment Plant
Executive Director’s Comment
Commenting on the performance, Mr. Sreekanth Reddy, Executive Director of the Company said,
“We have started the year on a positive note as reflected by revenue and profitability growth during the quarter. The business benefitted
from steady demand and better pricing environment in our primary markets, with minimal disturbances surrounding GST
implementation.
Our focus on controlling costs along with recent strategic initiatives have enabled us in delivering higher operational profitability despite
rising input costs. Going ahead, we expect our efficiencies to improve further as the acquisition of Sagar Cements (R) Ltd. and grinding
unit at Bayyavaram will not only help us lower our freight cost but will also aid us in improving our blending ratio. Also, the recent
commissioning of waste heat recovery plant should further help us in improving our operational efficiencies. The implementation of 1.2
million tonnes cement grinding facility at Bayyavaram, Vizag, Andhra Pradesh and 18 MW Coal based Captive Power Plant at
Mattampally, Telangana is on right track.
Going forward, we are hopeful that our recent strategic initiatives coupled with encouraging macros should help us in delivering
consistent growth.
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
State wise Realization & Utilization
Mattampally Plant
8
Gross Realisations (Rs. / tonne)
Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17
Overall Average 4,394 4,899 5,534 4,793
AP 4,645 5,523 5,992 5,181
OAP 4,294 4,712 5,370 4,628
Q1 FY18
Overall Average 5,565
TG 5,734
OTG 5,495
Utilisation (%)
Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16
Cement 65 49 44 61
Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17
Cement 57 44 43 59
Q1 FY18
Cement 56
Utilisation (%)
Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17
Cement 62 71 64 71
Q1 FY18
Cement 64
Gross Realisations (Rs. / tonne)
Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17
Overall Average 5,071 5,310 6,039 5,443
AP 5,671 6,260 6,426 5,545
OAP 4,938 5,147 5,962 5,416
Q1 FY18
Overall Average 6,174
AP 5,828
OAP 6,301
Gudipadu Plant
State Gross Realization \ t (Q1 FY18)
Telangana 5,734
Andhra Pradesh 5,909
Karnataka 5,387
Maharashtra 5,270
Odisha 5,006
Tamilnadu 6,068
Chhattisgarh 2,748
State Gross Realization \ t (Q1 FY18)
Andhra Pradesh 5.828
Karnataka 6,622
Tamilnadu 5,990
Kerala 4,191
Pondicherry 5,412
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Q3 FY16
Domestic : International coal mix was 20:80
Q4 FY16
Domestic : International coal mix was 25:75
Q1 FY17
Domestic : International coal mix was 4:96
Coal Prices
9
Coal Cost (Rs. / Tonne)
Q1 Q2 Q3 Q4
Indigenous AverageFY16
4,964 3,678 4,533 4,227
Imported Coal Average 5,361 5,764 5,715 5,670
Indigenous AverageFY17
4,330 4,618 4,765 4,904
Imported Coal Average 5,485 6,060 5,956 7,201
Indigenous AverageFY18
4,871
Imported Coal Average 6,714
Q2 FY17
Domestic : International coal mix was 0.4:99.6
Q4 FY17
Domestic : International coal mix was 20:80
Q1 FY18
Domestic : International coal mix was 07:93
Q3 FY17
Domestic : International coal mix was 20:80
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Rs.
/ Ton
neR
s.
/ Ton
ne
Cost Overview
10
779 812
8991,235
Q1 FY17 Q1 FY18
923
817
558 778
547
879
Q1 FY17 Q1 FY18
573
805
Increase in price of imported coal consumed, has resulted
in increase in the average fuel cost per tonne of clinker
produced.
Freight per ton increased due to increase in fuel prices.
Average Fuel Cost Per Tonne
Freight Cost per Tonne
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Employee costs in Q1 FY 18 was Rs. 1,146 lakhs on a
consolidated basis when compared to Rs. 1,054 lakhs during
Q1 FY17.
Raw Material cost has increased due to higher production
during the Q1 FY 18.
Rs.
lak
h
Cost Overview
11
900 968
154178
Q1 FY17 Q1 FY18
1,1461,054
1,3922,414
776
712
Q1 FY17 Q1 FY18
2,168
3,126
Employee Cost
Raw Material Cost
Rs. la
kh
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Production & Sales in Q1 FY18 and Dispatches by Road & Rake
12
Dispatch DetailsTPT Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 TOTALBY ROAD 5,72,527 4,89,731 4,66,045 6,28,844 21,57,147
BY RAKE 5,310 21,830 8,120 5,491 40,751
TOTAL 5,77,837 5,11,561 4,74,165 6,34,335 21,97,898
Consolidated
TPT Q1 FY18BY ROAD 6,12,088
BY RAKE 13,594
TOTAL 6,25,682
Production &Sales in Q1 FY 18
Particulars Sagar Cements Ltd. Sagar Cements (R) Ltd. Consolidated
Quantity Quantity
(in Tonnes)
Quantity
(in Tonnes)(in Tonnes)
Clinker Production 3,86,016 1,37,072 5,23,088
Cement Production/Purchase 4,74,296 1,59,649 6,33,945
Cement Sales 4,69,469 1,68,213 6,37,682
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Rs. In LakhSagar Cements
Ltd.
Sagar Cements
( R ) Ltd.Consolidated
Gross Debt 22,389 31,481 46,455
- Long Term 16,861 27,551 36,997
- Working Capital 5,528 3,930 9,458
Cash & Bank Balance 9,846 58 9,905
Debt Equity Ratio (%) 0.21 3.11 0.48
Net Worth 80,129 8,860 77,293
Investments 25,996 0 28
Key Balance Sheet Items
13
As of Jun’ 2017
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Sales Outside AP & TG
14
Historical trend in cement sales
Q1 FY18
OAP & TG Sales
(Consolidated)48%
Q4 FY17 Q3 FY17 Q2 FY17 Q1 FY17
OAP & TG Sales 49% 56% 63% 55%
Q4 FY16 Q3 FY16 Q2 FY16 Q1 FY16
OAP & TG Sales 48% 55% 64% 67%
Q4 FY15 Q3 FY15 Q2 FY15 Q1 FY15
OAP & TG Sales 71% 63% 64% 47%
Sagar Cements Limited l Q1 FY18 Investor / Analyst Presentation
Safe Harbour :
Certain matters discussed in this communication may contain statements regarding the company’s market opportunity and business prospects
that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and
are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are
not limited to, the performance of the Indian Economy and of the economies of various International markets, the performance of the Cement
Industry in India and world-wide, competition, the company’s ability to successfully implement its strategy, the company’s future levels of growth
and expansion, technological implementation, changes and advancements, change in revenue, income or cash flows, the company’s market
preferences and its exposure to market risks, as well as other risks. The company’s actual results, levels of activity, performance or
achievements could differ materially and adversely from results expressed in or implied by this presentation. The Company assumes no
obligation to update any forward-looking information contained in this communication. Any forward – looking statements and projections made by
third parties included in this communication are not adapted by the company and the company is not responsible for such third party statements
and projections
For further information contact:
Sagar Cements Limited CDR India
K Prasad- (Chief Financial Officer)
prasadk@sagarcements.in
Gavin Desa
gavin@cdr-india.com
PS Prasad - (President Marketing)
prasadps@sagarcements.in
Suraj Digawalekar
suraj@cdr-india.com
Company Secretary &Compliance Officer:
R.Soundararajan (CS)
soundar@sagarcements.in
Tel.: +91 22 6645 1237 / 1235
Tel.: +91 40 2335 1571 / 6572
Contacts
15
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